Homer Trunk Line -
Final Homer Project update for 2013:
ENSTAR’s contractor crews are finishing up the last few service line and main tie-ins for the 2013 construction season. ENSTAR has been busy doing Engineering and Permitting work for 2014. ENSTAR anticipates getting an early start on installing the gas main out on the Homer Spit. Contractor crews will start the Homer spit work in January 2014 and work weather permitting. Our goal is be done with the gas main installation on the Homer Spit prior to the busy 2014 tourist season. Work on Kachemak Drive, East Hill, West Hill and Skyline Drive and the surrounding subdivisions will start in May 2014.
ENSTAR and its contractors would like to thank everyone in Homer and Kachemak City for their patience and cooperation this past year. Together we’ve installed 65 miles of gas main and 800 service lines. Currently, over 400 businesses and residences are enjoying the benefits of using natural gas. Thanks again and Happy Holidays!
Currently, ENSTAR has a construction office in downtown Homer to manage the Trunk Line and local distribution systems projects. The office will also provide assistance to residents wishing to apply for natural gas service.
Office Main Number: 907-435-0635
Fax Number: 907-435-0639
345 Sterling Hwy, Suite 104
Homer, AK 99603
Founded in 1961 as a natural gas distribution company, ENSTAR Natural Gas Company serves approximately 350,000 customers through: 3,200 miles of distribution and transmission main, 115,000 service lines, and 134,000 meters. As the only natural gas distribution company in Southcentral Alaska, ENSTAR has historically relied on natural gas discovered by producers in the Cook Inlet. Expansion to new areas, such as the City of Homer and Kachemak City allows ENSTAR to bring a safe, clean, and reliable energy to thousands of additional Alaskans while reducing their energy costs by more than half.
ENSTAR received its Certificate of Public Convenience and Necessity to serve the Homer area from the Regulatory Commission of Alaska on August 25, 2004. In 2012, the State of Alaska provided The City of Homer with an $8.15 million dollar grant enabling the project to move forward. Construction on the Homer Trunk Line is scheduled to begin in February 2013.
Things You Should Know
Elements of the Expansion
The 22.7 mile Trunk Line will start in Anchor Point, run through the City of Homer, and end in Kachemak City. The line from Anchor Point to Homer High School will be 8” high density poly-ethylene pipe. The remaining distance from Homer High School to Kachemak City, will be 6” high density poly-ethylene pipe.
2) City of Homer Distribution System
The City of Homer is working through a public process to create a Homer Special Assessment District (HSAD). This process would approve the funding for the city’s distribution system and allow the City to contract with ENSTAR for its construction. The build-out is structured in two phases with the first phase constructed in 2013 and the second in 2014. For more information on how the HSAD proposal would work please visit the City of Homer website:
City of Homer distribution system build-out. White = 2013 Build-Out. Yellow = 2014 Build-out.
Homer Spit distribution system build-out. White = 2013 Build-Out. Yellow = 2014 Build-out.
3) Kachemak City Distribution System
A Utility Special Assessment District (USAD) was developed by Kachemak City to help its residents pay for the cost of the distribution build-out. The contract between Kachemak City and ENSTAR was signed on February 4, 2013. The Kachemak City distribution system will be constructed in one year and is scheduled to begin in 2013.
A surcharge is a temporary cost recovery mechanism that ENSTAR uses to assist area residents in paying for the cost of bringing natural gas to a new service area.
Construction costs for the Homer trunk line are estimated to be $10.5 million. The State of Alaska’s grant amount of $8.15 million reduces the cost to Homer area residents to $2.35 million (assuming the project's actual cost is $10.5 million). Consistent with ENSTAR policies and practices approved by the RCA, the difference of approximately $2.35 million is passed on to customers of the new service area who receive natural gas through a $1 per thousand cubic feet (Mcf) surcharge. This allows the cost of delivery to be distributed over a period of time rather than area residents having to pay the full cost up front in order to receive natural gas.
The duration of the surcharge is dependent on how quickly gas is consumed. Therefore, the earlier customers sign up and start consuming gas, the sooner the balance will be paid and a surcharge will no longer be necessary.
All parcels below the solid green line will be assessed the $1 per Mcf surcharge.
Click here to read the RCA approved tariff language for more detailed information on how the surcharge works
Some may notice there is construction activity on the Homer Spit. This is not ENSTAR related work. ENSTAR is planning on extending gas to the Homer Spit in 2014